Reykjavik - Iceland should turn in its application for European Union membership by the end of July, Prime Minister Johanna Sigurdardottir told the nation's legislature Saturday.

Speaking before the parliament, or Althing, Sigurdardottir said she plans to make the application during a July 27 meeting of EU foreign ministers. She urged members of the 63-seat legislature to move quickly so that the application could be filed as planned.

The prime minister has decided that EU membership is the best way to stabilize the island's economy after its banking industry collapsed in the autumn under the weight of the financial crisis.

However, not all Icelandic parties are in agreement with Sigurdardottir's Social Democrats, worrying that joining the EU could mean giving up some of the country's control over its fishing.

A legislative vote is tentatively set for Monday, but opponents of EU membership have argued for a nationwide referendum on the question.

EU officials have said that, if an application is made, Iceland could probably become a full member between 2010 and 2012. Iceland is already a member of the European Economic Area and the border-free Schengen zone, meaning that its legislation is already in line with EU rules in many areas. (dpa)